7. Tanton plc is the parent company of Ruckus plc. Tanton sold its inventory to Ruckus for a price of 14,000. Tanton had held such inventory on its statement of financial position at a cost of 10,000. By the end of the financial year, Ruckus still held 2,800 of that inventory on its statement of financial position.

How much unrealised profit should be cancelled on consolidation?

A. Zero

B. 400

C. 800

D. 2,800

E. 4,000

F. An amount different from all the above